Athens nears vote on bailout
July 15, 2015
Greek Prime Minister Alexis Tsipras faced down detractors in his leftist Syriza government on Wednesday and looked set to rely on opposition legislators to carry the vote in parliament.
Some 30 rebels in his party object to the deal. Tsipras told Greek television he would "take decisions and not run away" from last Monday's bailout deal reached with creditors in Brussels designed to avoid a Greek eurozone exit.
His 162-seat coalition must hang on to at least 151 out of 300 seats to keep its majority. And, it can remain as a minority government with 121 seats as long as the opposition does not press a vote of confidence.
On Wednesday, thousands took to the streets in Athens and other cities across Greece to protest the new internationally imposed austerity measures that Tsipras sought to push through the parliament just over a week after more than 60 percent of Greeks had voted against them. Police in Athens responded with tear gas to protesters who threw stones and dozens of petrol bombs.
Hours earlier, the bailout agreement was backed by both houses of the French parliament.
French Prime Minister Manuel Valls said the reforms demanded were "normal" and the rescue package - Greece's third in five years - was the only route of the crisis.
Valls described past talk of a Greek exit from the eurozone, or "Grexit," as an "old, absurd and dangerous idea."
Spanish Prime Minister Mariano Rajoy said his government "completely" supported a third bailout for Greece, so long as Tsipras' government fulfilled the reform requirements.
Little enthusiasm
Greek ministers still supporting the bailout deal expressed little enthusiasm for it on Wednesday
"It's a difficult deal, a deal for which only time will show if it is economically viable," said Finance Minister Euclid Tsakalotos said.
Deputy Finance Minister Nadia Valavani quit Wednesday and Energy Minister Panagiotis Lafazanis said he would not back the deal, which would include changes to labor laws, pensions, sales and other taxes. AFP said a senior economy ministry official also walked out in protest.
"The choice between a bailout and catastrophe is a choice made in the face of terror, said Lafazanis as Greeks faced more throttled cash withdrawals at bank dispensers.
Former finance minister Yanis Varoufakis denounced the bailout as a "new Versailles Treaty" in a reference to reparations demanded of Germany after World War I.
Civil servants held a strike on Wednesday, as did pharmacists. Leftwing anti-bailout groups staged protest marches. Street protests were however relatively muted.
Third rescue plan
To activate the deal, parliament must vote for reforms before the 18 other eurozone leaders start further detailed talks aimed at a three-year bailout worth up to 86 billion euros ($95 billion). It would be Greece's third rescue plan in five years.
Polls published Tuesday by Kapa Research showed that 72 percent of Greeks thought the deal was necessary if tough. Many saw it as a humiliating climb-down.
If fallout from the vote leads to a new coalition, 68 percent said it should be led by Tsipras.
Bridging finance
The European Commission faces objections from Britain and the Czech Republic as it arranged short-term cash to assist Greece until the eurozone bailout is finalized within the next four weeks.
Greece is facing a July 20 deadline when a 3.5 billion euro payment to the European Central Bank is due.
If the Greek parliament does approve the deal, Europe's next step would be to debate the deal in some national parliaments.
Atmosphere 'tense'
Eckhardt Rehberg, a budgetary spokesman for conservatives in Germany's parliament, told Reuters that he expected a broad majority would back the deal.
He acknowledged, however, that the "atmosphere in our parliamentary group is very tense when it comes to Greece."
"There are several colleagues who are still doubtful," he added.
The newspaper Bild reported that 11 German lawmakers planned to vote "no" when the Bundestag is recalled on Friday to approve the start of detailed bailout talks for Greece.
Estonian Radio reported that leading members of conservative opposition parties rejected further aid for Athens.
ipj/jil (dpa, AFP; Reuters)